Determine the cost of debt and equity for Genesis Energy and its weighted average cost of capital.

Considering Genesis Energy’s aggressive growth plan, Sensible Essentials suggested that its client should broaden the scope of financing beyond short-term loans and consider long-term financing options. These options would greatly enhance the ability of the operations management team to fund the capital investments and growth in operating expenses.

One option is selling more equity in the company. A public stock offering might be a possibility; however, a company as young and small as Genesis Energy might be hard to value. Sensible Essentials believes that another private investor might require preferred stock dividends in order to mitigate some of the financial risk. Another option is a long-term bank loan.

Acting as the finance expert for Sensible Essentials, respond to the following:

  • Determine the cost of debt and equity for Genesis Energy and its weighted average cost of capital. Go to www.yahoofinance.com and look under SEC filings. Use a US publicly traded company, such as Apple, Google, DuPont, etc.
  • Identify the sources of long-term financing for Genesis Energy.
  • Analyze the potential costs and benefits of each option.
  • Explain how relative risk (from the investor’s perspective) impacts the cost of capital for Genesis Energy.
  • Determine the cost of debt and equity for Genesis Energy and its weighted average cost of capital.
  • Calculate the required rate of return for Genesis Energy using the capital asset pricing model (CAPM). What is the required return for Genesis Energy shareholders?

Write your initial response in 5–7 paragraphs. Apply APA standards to citation of sources.

By Saturday, June 28, 2014, post your response to the appropriate Discussion Area. Through Wednesday, July 2, 2014, review and comment on at least two peers’ responses. In your response, do the following:

  • Respond with substantial comments to enrich discussion and the learning experience.
  • Contribute new, relevant information or quotes from course readings, Web sites, or other sources. Build on the remarks or questions of others, or share practical examples of key concepts from your experience, professional or personal.
Assignment 1 Grading Criteria
Maximum Points
Initial response:

  • Was insightful, original, accurate, and timely.
  • Was substantive and demonstrated advanced understanding of concepts.
  • Compiled/synthesized theories and concepts drawn from a variety of sources to support statements and conclusions.
16
Discussion response and participation:

  • Responded to a minimum of two peers in a timely manner.
  • Offered points of view supported by research.
  • Asked challenging questions that promoted the discussion.
  • Drew relationships between one or more points in the discussion.
16
Writing:

  • Wrote in a clear, concise, formal, and organized manner.
  • Responses were error free.
  • Information from sources, where applicable, was paraphrased appropriately and accurately cited.
8
Total:
40

Which of the following financial ratios is the best measure of the operating effectiveness of a firm’s management?

FIN/370 FIN 370 FIN370 Week 5 Final Exam – New 2014 Version – from an A+ rated tutor!

 

PLEASE MAKE SURE YOU SCROLL DOWN AND DOWNLOAD THE ATTACHMENT AFTER PURCHASING THIS TUTORIAL! MESSAGE ME IF YOU HAVE ANY QUESTIONS!

Capital Structure Theory in general assumes that:

·         [removed]

A firm’s value is determined by capitalizing (discounting) the firm’s expected net income by the firm’s cost of equity.

·         [removed]

A firm’s cost of capital rises as a firm uses more financial leverage.

·         [removed]

A firm’s value is determined by discounting the firm’s expected cash flows by the WACC.

·         [removed]

 

A firm’s cash flows will grow indefinitely at a constant rate.

Which of the following financial ratios is the best measure of the operating effectiveness of a firm’s management?

·         [removed]

Quick ratio

·         [removed]

Return on investment

·         [removed]

Current ratio

·         [removed]

Gross profit margin

 

 

 

 

 

The Securities Investor Protection Corporation protects individuals from

·         [removed]

other investors who fail to make delivery

·         [removed]

fraud by corporations

·         [removed]

making poor investment decisions

·         [removed]

brokerage firm failures

 

 

 

A company collects 60% of its sales during the month of the sale, 30% one month after the sale, and 10% two months after the sale. The company expects sales of $10,000 in August, $20,000 in September, $30,000 in October, and $40,000 in November. How much money is expected to be collected in October?

·         [removed]

$25,000

·         [removed]

$35,000

·         [removed]

$45,000

·         [removed]

$15,000

 

 

 

Project Sigma requires an investment of $1 million and has a NPV of $10. Project Delta requires an investment of $500,000 and has a NPV of $150,000. The projects involve unrelated new product lines. What is your evaluation of these two projects?

·         [removed]

The company should look at other investment criteria, not just NPV.

·         [removed]

Only project Delta should be accepted. Alpha’s NPV is too low for the investment.

·         [removed]

Both projects should be accepted because they have positive NPV’s

·         [removed]

Neither project should be accepted because they might compete with one another

 

 

Which of the following is not part of the underwriting process?

·         [removed]

the prospectus

·         [removed]

the Securities and Exchange Commission

·         [removed]

the syndicate

·         [removed]

the Federal Reserve

 

 

 

 

 

 

When the impact of taxes is considered, as the firm takes on more debt

·         [removed]

the weighted average cost of capital will increase.

·         [removed]

there will be no change in total cash flows.

·         [removed]

both taxes and total cash flow to stockholders and bondholders will decrease.

·         [removed]

cash flows will increase because taxes will decrease.

 

 

Metals Corp. has $2,575,000 of debt, $550,000 of preferred stock, and $18,125,000 of common equity. Metals Corp.’s after-tax cost of debt is 5.25%, preferred stock has a cost of 6.35%, and newly issued common stock has a cost of 14.05%. What is Metals Corp.’s weighted average cost of capital?

·         [removed]

12.78%

·         [removed]

8.32%

·         [removed]

6.56%

·         [removed]

10.84%

 

 

 

 

Given an accounts receivable turnover of 8 and annual credit sales of $362,000, the average collection period (360-day year) is

·         [removed]

60 days.

·         [removed]

45 days.

·         [removed]

75 days

·         [removed]

90 days.

 

 

Accounting break-even analysis solves for the level of sales that will result in:

·         [removed]

Free cash flow = $0.00.

·         [removed]

NPV = $0.00.

·         [removed]

IRR=Cost of Capital.

·         [removed]

net income = $0.00.

 

 

 

 

 

 

Buying and selling in more than one market to make a riskless profit is called:

·         [removed]

profit maximization.

·         [removed]

arbitrage.

·         [removed]

international trading.

·         [removed]

globalization

 

 

Which of the following best describes why cash flows are utilized rather than accounting profits when evaluating capital projects?

·         [removed]

Cash flows are more stable than accounting profits.

·         [removed]

Cash flows reflect the timing of benefits and costs more accurately than accounting profits.

·         [removed]

Cash flows have a greater present value than accounting profits.

·         [removed]

Cash flows improve the tax position of a firm more than accounting profits.

 

 

 

 

 

Which of the following could offset the higher risk exposure a company would face if it’s current ratio and net working capital were relatively low?

·         [removed]

It could buy back some of its shares in the open market in order to reduce its equity.

·         [removed]

Its current assets would need to be highly liquid.

·         [removed]

It could offer no discounts for early payment by its customers.

·         [removed]

Its accounts receivable collection policy could increase the average collection period.

 

 

 

Which of the following best describes why cash flows are utilized rather than accounting profits when evaluating capital projects?

·         [removed]

Cash flows are more stable than accounting profits.

·         [removed]

Cash flows have a greater present value than accounting profits.

·         [removed]

Cash flows reflect the timing of benefits and costs more accurately than accounting profits.

·         [removed]

Cash flows improve the tax position of a firm more than accounting profits.

 

 

 

 

Compute the payback period for a project with the following cash flows, if the company’s discount rate is 12%.

Initial outlay = $450

Cash flows:       Year 1 = $325

Year 2 = $65

Year 3 = $100

·         [removed]

3.43 years

·         [removed]

3.17 years

·         [removed]

2.88 years

·         [removed]

2.6 years

 

 

The Oviedo Thespians are planning to present performances of their Florida Revue on 2 consecutive nights in January. It will cost them $5,000 per night for theater rental, event insurance and professional musicians. The theater will also take 10% of gross ticket sales. How many tickets must they sell at $10.00 per ticket to raise $1,000 for their organization?

·         [removed]

1000 tickets

·         [removed]

1,314 tickets

·         [removed]

1,223 tickets

·         [removed]

1,112 tickets

 

 

Which of the following is true regarding Investment Banks?

·         [removed]

As a result of the financial crisis of 2008, all stand-alone Investment banks either failed, were merged into commercial banks, or became commercial banks.

·         [removed]

When Glass-Steagal was repealed in 1999, commercial banks and Investment banks had to be separate entities.

·         [removed]

As of 2010, stand alone Investment banks are numerous.

·         [removed]

Under the Glass-Steagal act, commercial banks were allowed to operate as Investment banks.

 

 

 

If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should:

·         [removed]

maximize sales revenues

·         [removed]

increase the market value of the firm’s common stock.

·         [removed]

positively affect profits.

·         [removed]

either increase or have no effect on the value of the firm’s common stock.

 

 

 

Which of the following is true about bonds?

·         [removed]

They are obligations from the investor to the corporation.

·         [removed]

They have a fixed maturity, and they pay an amount equal to the maturity value times the coupon rate each year.

·         [removed]

At maturity of the bond, the investor receives the market price of the bond.

·         [removed]

Their interest rate always varies with the Consumer Price Index

 

 

Which of the following is most likely to occur if a firm over-invests in net working capital?

·         [removed]

The current ratio will be lower than it should be.

·         [removed]

The return on investment will be lower than it should be.

·         [removed]

The quick ratio will be lower than it should be.

·         [removed]

 

 

 

 

 

 

 

 

 

 

 

The times interest earned ratio will be lower than it should be.

 

Which of the following goals is in the best long-term interest of stockholders?

·         [removed]

Profit maximization

·         [removed]

Maximizing sales revenues

·         [removed]

Maximizing of the market value of the existing shareholders’ common stock

·         [removed]

Risk minimization

 

 

Apple Two Enterprises expects to generate sales of $5,950,000 for fiscal 2014; sales were $3,450,000 in fiscal 2013. Assume the following figures for the fiscal year ending 2013: cash $70,000; accounts receivable $250,000; inventory $400,000; net fixed assets $520,000; accounts payable $235,000; and accruals $155,000. Use the percent-of-sales method to forecast cash for the fiscal year ending 2014.

·         [removed]

$216,418

·         [removed]

$120,725

·         [removed]

$319,604

·         [removed]

$75,003

 

 

 

 

Which of the following statements best represents what finance is about?

·         [removed]

Maximizing profits

·         [removed]

Creation and maintenance of economic wealth

·         [removed]

How political, social, and economic forces affect corporations

·         [removed]

Reducing risk

 

 

 

If you have $20,000 in an account earning 8% annually, what constant amount could you withdraw each year and have nothing remaining at the end of five years?

·         [removed]

$3,525.62

·         [removed]

$5,008.76

·         [removed]

$2,465.78

·         [removed]

$3,408.88

 

 

 

 

 

Long-term financial plans typically encompass:

·         [removed]

5 to 10 years.

·         [removed]

about 5 years.

·         [removed]

6 to 12 months.

·         [removed]

the entire lifecycle of the corporation.

 

 

When calculating the weighted average cost of capital, which of the following has to be adjusted for taxes?

·         [removed]

Common stock

·         [removed]

Retained earnings

·         [removed]

Preferred stock

·         [removed]

Debt

 

 

 

 

 

 

 

 

We compute the profitability index of a capital-budgeting proposal by Initial outlay = $1,748.80

·         [removed]

dividing the present value of the annual after-tax cash flows by the cost of capital.

·         [removed]

multiplying the cash inflow by the IRR.

·         [removed]

multiplying the IRR by the cost of capital.

·         [removed]

dividing the present value of the annual after-tax cash flows by the cost of the project.

 

 

You just purchased a parcel of land for $10,000. If you expect a 12% annual rate of return on your investment, how much will you sell the land for in 10 years?

·         [removed]

$25,000

·         [removed]

$38,720

·         [removed]

$39,720

·         [removed]

$31,060

 

 

 

 

Aspects of demand risk controllable by the firm include:

·         [removed]

interest rates.

·         [removed]

entry of external competitors.

·         [removed]

status of the regional and national economy.

·         [removed]

product quality.

 

 

 

Delta Inc. is considering the purchase of a new machine which is expected to increase sales by $10,000 in addition to increasing non-depreciation expenses by $3,000 annually. Due to the sales increase, Delta expects its working capital to increase $1,000 during the life of the project. Delta will depreciate the machine using the straight-line method over the project’s five year life to a salvage value of zero. The machine’s purchase price is $20,000. The firm has a marginal tax rate of 34 percent, and its required rate of return is 12 percent. The machine’s initial cash outflow is:

·         [removed]

$21,000.

·         [removed]

$23,000.

·         [removed]

$27,000.

·         [removed]

$20,000.

Describe and analyze the broad range of talent management efforts that use software applications to help you Director to make an educated decision.

Describe and analyze the broad range of talent management efforts that use software applications to help you Director to make an educated decision.

I must have the website links that the informat\ion is coming from included in the reference…. 
This has to be completed today by 7PM EST.
5 – 7 slides with speaker notes of 200 – 250 words per slide (excluding Title and Reference slides
You, as a HR Generalist, have been asked by your HR Director for your recommendations in terms of what tools your organization could use to better manage the talents of your employees. This will help to develop policies and procedures in managing your human capital. Please develop a PowerPoint presentation to your Director addressing the following:

 

  • Describe and analyze the broad range of talent management efforts that use software applications to help you Director to make an educated decision.
  • Give some examples of firms that have successfully used these applications.
  • Describe how these efforts are useful in terms of strategic human capital management.

What was the effect of these sales on Bextra’s current ratio?

Financial Accounting Exam 2
1) The fundamental accounting equation is a reflection of the:

Money measurement concept

Conservatism concept

Dual-aspect concept

Historical cost concept
2)
The historical cost concept reflects the fact that financial accounting practice favors:

   Reliability over relevance

Management’s best guess over historical financial information

Relevance over reliability

Consensus market values over historical financial information
3)
Jon Sports’ inventory account increased from $25,000 on December 31, 2003 to $30,000 on December 31, 2004. Which one of the following items would be included in the operating section of its 2004 indirect method statement of cash flows?

Add increase in inventory $5,000

Subtract increase in inventory ($5,000)

Add inventory balance $20,000

Subtract inventory balance ($20,000)
4)
Turnkey Systems, Inc. began the month of June, 2004 with a prepaid expenses balance of $240,000. During the month, debits totaling $110,000 and credits totaling $80,000 were made to the prepaid expenses account. What was the June, 2004 ending balance of prepaid expenses?

A debit balance of $210,000

A credit balance of $210,000

A debit balance of $270,000

A credit balance of $270,000
5)
Pentex and Marbro, small companies in the stationery business, each had a dollar gross margin of $20,000 during September 2004. Pentex’s September sales were twice that of Marbro’s. If Pentex’s gross margin as a percentage of sales for September was 10%, Marbro’s gross margin as a percentage of sales for the same period was:

10%

5%

20%

Cannot be calculated
6)
When an entity recognizes revenue before it has received cash for the sale, it records an increase in a(n):

Liability such as ‘Advances from customers’

Accounts payable

Accounts receivable

Prepaid expense
7)
Juan Foods pays off a long-term debt in full. Which one of the following statements describes the effect of the sale on Juan Foods?

Current ratio increases; total debt to equity ratio decreases

Current ratio decreases; total debt to equity ratio decreases

Current ratio decreases; total debt to equity ratio increases

Current ratio increases; total debt to equity ratio increases
8) On January 1, 2005, Mansfield Company has a retained earnings balance of $256,000. During 2005, its net income is $44,000 and it announces and pays $12,000 in dividends. There is no other dividend-related activity during the year. Its December 31, 2005 retained earnings balance is:

$212,000

$288,000

$300,000

$224,000
9)
Juan Foods makes a cash sale with a positive gross margin. Which one of the following statements describes the effect of the sale on Juan Foods?

Current ratio increases

Current ratio decreases

No change to Juan Foods’ current ratio

Insufficient information to judge effect on current ratio
10)
Juan Foods pays off a long-term debt in full. Which one of the following statements best describes the appropriate book-keeping for this transaction?

Debit cash; credit long-term debt

Debit long-term debt; credit owners’ equity

Debit owners’ equity; credit long-term debt

Debit long-term debt; credit cash
11)
On March 31, 2005, Cars, Inc. owes Preston Devices, one of its suppliers, $25,000 for previous purchases. During April 2005, Preston sells Cars devices with a sales price of $10,000 and a cost to Preston of $8,000. During April Cars pays Preston $12,000 against the amount owed to Preston. What is the effect of these April transactions on Preston’s balance sheet?

Cash increased by $12,000; accounts receivable decreased by $2,000; inventory decreased by $8,000; retained earnings increased by $2,000.

Accounts receivable increased by $2,000; inventory decreased by $8,000; cash increased by $12,000; retained earnings increased by $12,000.

Cash increased by $12,000; retained earnings decreased by $2,000; inventory decreased by $10,000; accounts receivable decreased by $12,000.

Cash increased by $2,000; accounts receivable decreased by $2,000; inventory decreased by $8,000; retained earnings decreased by $12,000.
12)
Consider the same scenario as in the previous question: On March 31, 2005, Cars, Inc. owes Preston Devices, one of its suppliers, $25,000 for previous purchases. During April 2005, Preston sells Cars devices with a sales price of $10,000 and a cost to Preston of $8,000. During April Cars pays Preston $12,000 against the amount owed to Preston. If Preston had no other sales and records no other collections from customers during the month of April, the operating section of Preston’s indirect method statement of cash flows for April will show the following de-accrual adjustments to net income:

Subtract change in accounts receivable; add change in inventory.

Add change in accounts receivable; subtract change in inventory

Add change in accounts receivable; add change in inventory.

Subtract change in accounts receivable; subtract change in inventory.
13)
Planet Music buys all of its inventory on credit. During 2005, Planet Music’s inventory account increased by $10,000. Which of the following statements must be true for Planet Music during 2005?

It made payments of less than $10,000 to suppliers.

It made cash payments of $10,000 to suppliers.

It made more cash payments to its suppliers than it recorded as cost of goods sold.

It paid less cash to suppliers than it recorded as cost of goods sold.
14) On December 31, 2005, Juan Foods purchases a van for $12,000. How does the purchase of the van affect Juan Foods’ 2005 income statement?

Decreases sales by $12,000

Increases operating expenses by $12,000

No material effect

Increases cost of goods sold by $12,000
15)
To be recorded as a liability, an item must meet three specific conditions. Two of them are: it must involve probable future sacrifice of economic resources by the entity, and it must be a present obligation that arose as a result of a past transaction. Which one of the following is the third condition?

The item must reduce the market value of the recording entity

It must involve a transfer of resources to another entity

It must involve the expenditure of cash now or in the future

It must not cause total liabilities to exceed total assets
16) The next 9 questions are based on Patnode Inc.’s balance sheets at year end 2004 and 2005.

https://eproduct.hbsp.harvard.edu/eproduct/product/financialaccounting_intro/content/item/2571/finalexam2_balance.png

During 2005, Patnode announced and paid dividends of $1,000, the only dividend-related activity during the year. What was its 2005 net income?
$5,600

$3,600

$4,600
https://eproduct.hbsp.harvard.edu/eproduct/product/financialaccounting_intro/content/item/2571/finalexam2_balance.png
Cannot be estimated
17)
During 2005, Patnode had a cash outflow of $15,000 for investing activities and a cash inflow of $7,000 from financing activities. Its 2005 cash flow from operations was:
https://eproduct.hbsp.harvard.edu/eproduct/product/financialaccounting_intro/content/item/2571/finalexam2_balance.png

Outflow of $15,000

Inflow of $15,000

Outflow of $8,000

Inflow of $8,000
18)
Patnode’s 2005 statement of cash flows contains four items in the financing section. Three of them are: Short-term debt issued, $15,000; Short-term debt paid, ($10,000) and Dividends paid, ($1,000). What is the fourth item in the financing section?
https://eproduct.hbsp.harvard.edu/eproduct/product/financialaccounting_intro/content/item/2571/finalexam2_balance.png

Retained earnings, $4,600

Common stock issued, $3,000

Long-term debt paid, ($3,000)

Cash from financing, $3,000
19)
How much total depreciation and amortization expense did Patnode record during 2005?
https://eproduct.hbsp.harvard.edu/eproduct/product/financialaccounting_intro/content/item/2571/finalexam2_balance.png

$10,000

$6,000

$3,000

$5,000
20)
During 2005, Patnode recorded sales of $17,000. How much cash did it collect from its customers?
https://eproduct.hbsp.harvard.edu/eproduct/product/financialaccounting_intro/content/item/2571/finalexam2_balance.png

$17,000

$14,000

$3,000

Cannot be estimated
21)
https://eproduct.hbsp.harvard.edu/eproduct/product/financialaccounting_intro/content/item/2571/finalexam2_balance.png

Which one of the following items will not appear in the operating section of Patnode’s 2005 indirect method cash flow statement?
Deduct: increase in accounts receivable $3,000

Add: decrease in accounts payable $1,000

Add: increase in taxes payable $2,400

Add: decrease inventories $6,000
22)
What is Patnode’s current ratio at the end of 2004?
https://eproduct.hbsp.harvard.edu/eproduct/product/financialaccounting_intro/content/item/2571/finalexam2_balance.png

2.46

0.41

1.12

0.89
23)
https://eproduct.hbsp.harvard.edu/eproduct/product/financialaccounting_intro/content/item/2571/finalexam2_balance.png

What is Patnode’s total debt to equity ratio at the end of 2004 (rounded to two decimal places)?
5.3

0.19

0.25

4.04
24)
https://eproduct.hbsp.harvard.edu/eproduct/product/financialaccounting_intro/content/item/2571/finalexam2_balance.png

Patnode recorded a 2005 tax expense of $3,000. What amount did it pay to the tax authorities during 2005?
$2,400

$7,000

$600

$5,400
25)
Kirby, Inc. records a sale with a gross margin of $1,400. Which one of the following statements correctly describes the effect of such a sale on its balance sheet?

Common stock increases by $1,400

The sales revenue account increases by $1,400

The gross margin account increases by $1,400

The retained earnings account increases by $1,400
26)
Sandy Robbins is the sole owner of a hair salon. He often takes small amounts of “lunch money” from the cash register, figuring that “it is my business anyway.” His accountant, however, insists that Sandy make a note of the cash he takes, and at the end of the each accounting period, she debits owners’ equity and credits the cash account for the total amount that Sandy has taken during the period.
In recording the cash withdrawals even though Sandy is sole proprietor, the accountant is correctly applying the:

Matching concept

Entity concept

Materiality concept

Conservatism concept
27)
Anderson Electronics’ 2005 return on sales percentage is 20%. Its 2005 net income is $40,000. What is its 2005 sales?

$400,000

$80,000

$200,000

$100,000
28)
Anderson Electronics’ 2005 return on sales percentage is 20%. Its 2005 net income is $40,000. What is its 2005 sales?

$400,000

$80,000

$200,000

$100,000
29)
During June 2005, Bextra Inc. recorded sales of $55,000 but only $20,000 was collected in cash from customers. Cost of goods sold of $38,000. What was the effect of these sales on Bextra’s current ratio?

Current ratio increases

Current ratio decreases

Current ratio remains unchanged

Insufficient information provided to judge effect on current ratio
30)
Which one of the following statements is not true about statements of cash flows prepared according to U.S. GAAP?

The operating section of the indirect method starts with the net income of the period

In the indirect method statement, the period’s depreciation is added to net income because it is a source of cash

Interest payments are included in the operating section of the direct method statement

The investing section of the direct method statement for a period is identical to the investing section of the indirect method statement for the same period
31)
A company raised $50,000 in cash by taking a one-year loan of $10,000 and a 5-year loan of $40,000. Which of the following is the correct journal entry to record this transaction?

Debit short-term debt $40,000; debit retained earnings $10,000; credit cash $50,000

Debit short-term debt $50,000; credit cash $50,000

Debit cash $50,000; credit long-term debt $50,000

Debit cash $50,000; credit short-term debt $10,000; credit long-term debt $40,000
32)
Which one of the following statements describes the rules about posting transactions into T-accounts in the ledger?

For assets, debits are entered on the left; for liabilities, credits are entered on the left

For assets, credits are entered on the left; for liabilities, debits are entered on the left

Debits on the left; credits on the right

Credits on the left; debits on the right
33)
Baxtra, Inc. pays $20,000 in cash as interest to its lenders during 2005. According to U.S. GAAP, in which section of the statement of cash flows would this payment be included?

The operating section

The financing section

The investing section

Depends on whether cash flow statement is direct or indirect method.
34)
Taylor Company had a salaries payable balance of $18,000 on December 31, 2004. During 2005, it paid $50,000 in cash as salaries, and recorded a salary expense of $50,000. Its December 31, 2005 salaries payable balance is:

$50,000

$18,000

$100,000

Cannot be determined from the information provided
35)
On April 30, 2005, Zono Electronics, Inc. made a payment of $3,500 to Imperial Distributors, a supplier. Choose the statement that best describes the recording of this financial transaction by Imperial Distributors.

Debit cash $3,500; credit accounts payable $3,500

Debit accounts receivable $3,500; credit cash $3,500

Debit accounts payable $3,500; credit cash $3,500

Debit cash $3,500; credit accounts receivable $3,50
36)
Sardi Company estimates its 2005 tax expense to be $80,000. It makes a cash payment of $20,000 to the tax authorities on December 31, 2005. How should this transaction be recorded by Sardi?

Debit tax expense $80,000; credit cash $60,000; credit taxes payable $20,000

Debit tax expense $80,000; credit cash $20,000; credit taxes payable $60,000

Debit tax expense $80,000; credit cash $20,000

Debit tax expense $80,000; credit cash $20,000; credit accounts payable $60,000
37)
On June 1, 2005, Planet Music has accounts payable of $45,000. During the month, debits of $3,000 and credits of $11,000 were made to the account. At the end of June 2005, what was the accounts payable balance?

A credit balance of $53,000

A debit balance of $42,000

A credit balance of $56,000

A debit balance of $53,000
38)
Barnaby & Sons receives a large shipment of goods from its supplier. It pays $58,000 at the time of delivery and promises to pay the remaining $42,000 within the next two months. What is appropriate journal entry for this transaction?

Debit cash $42,000; debit inventory $16,000; credit accounts payable $58,000;

Debit inventory $100,000; credit cash $58,000; credit accounts payable $42,000

Debit accounts payable $58,000; credit cash $42,000; credit inventory $16,000

Debit accounts payable $58,000; debit cash $42,000; credit inventory $100,000
39)
Annie’s Fitness sells a set of free weights to a customer for $1,000. The customer pays $600 in cash and puts the rest on her store credit account. Which one of the following statements describes the most appropriate accounting for the transaction?

Debit cash $600; debit accounts receivable $400; credit cost of good sold $1000

Debit cash $600; debit accounts receivable $400; credit revenues $1,000

Debit revenues $1,000; credit cash $600; credit accounts receivable $400

Debit cash $600; debit accounts receivable $400; credit inventory $1,000
40)
Annie’s Fitness sells a set of free weights to a customer for which Annie’s had paid $750. Which one of the following statements describes the most appropriate accounting for the transaction?

Debit cost of goods sold expense $750; credit cash $750

Debit inventory $750; credit cost of goods sold expense $750

Debit cost of goods sold expense $750; credit inventory $750

Debit inventory $750; credit accounts payable $750

What should be theannual payment amount you withdraw if you do not want to leave any money to your heirs?

Use sufficient solution steps, and specific Excel functions =PV(…), =FV(…), =PMT(…), =NPER(…), =RATE(…), =PRICE(…)or =YIELD(…) whenever applicable. Don’t use any“Amortization tables” . Must be done in excel, put each case on a separate tab.

 

 

Case 1:

You apply for a20-year, fixed-rate (APR6.48%) monthly-payment-required mortgage loan for a house selling for $150,000 today. Your bank requires 22% initial down payment of house value, and $3,000 closing cost(to be carried into loan balance and amortized later) when the loan is approved.

 

(a) Whatis yourmonthly loan payment if you stick to the mortgage deal till the end(assuming eachpayment ismade at the end of each month)?

 

 

 

 

 

(b)9years after buying the house, what will betheremainingloanprincipal balance?(Please note again it is a monthly mortgage.)

 

 

 

 

 

(c)9 yearsafter buying the house, the loan market rate drops from 6.48% APR to 6.00% APR.You plan to refinance,but the bank would chargean extrafee of$4,500for refinancing (which is carried into the current remaining loan balance for amortization). Would you be able, and by how much, to lower your monthly loan payment if you choose to refinanceon the remaining loan principal balance over the remaining loan life period?Based on your calculation results, should you choose to refinance or not?

 

 

 

 

 

 

(d)Redo the calculations in Question (c), assuming that the loan market rate drops from 6.48% APR to 5.76% APR (instead of 6.00%).Shall you choose to refinance then?

 

 

 

 

Case 2:

By the end of each year, you contributea$3,300 to your retirement fund portfolio, which on average earns an annualnominalreturn of 11.25% over time.Theannualcontribution continues for 36 years until you retire.(Note: All tax concerns are ignored here.)

 

(a)Bythe time of your retirement, how much moneywould you have in your portfolio? (without considering any inflation)

 

 

 

 

 

 

 

(b) For your post-retirement life (whichwouldlast approximately another 28 years),by the end ofevery year you withdraw and spend an equal amount of annuity payment from yourretirement fund account.What should be theannual payment amount you withdraw if you do not want to leave any money to your heirs? (without considering any inflation)

 

 

 

 

 

 

 

(c) Considering the long-term inflationaverages 3.50% annually.How much money(at real purchasing power) will you actually have when you retire?How muchequal amountshould you withdraw and spend (at real purchasing power) by the end of each year for your post-retirement life, provided thatyouleaveno money to your heirs in the end?

 

 

 

 

 

 

 

(d) Again consider the long-term annual inflation 3.50%, and use the information you obtain from the above (c).How muchequal amountshould youand your heirswithdraw and spend (at real purchasing power) by the end of each year, provided that you and your heirs can benefit from this fund generations after generationsinfinitely?

 

 

 

 

 

 

Case 3:

You find a municipal bond issued by the Illinois state government.

 

The last sale “settlement date” is June 28, 2014, on which the bond price is quoted as “109.171” (Note: Bonds in US market are not quoted in $, but instead in % of par value).

 

The bond’s coupon rate is fixed as “5.000” percent per year (coupon paid semiannually), and its yield to maturity (YTM) is quoted as “3.818” percent per year.

 

The bond’s maturity date is October 01, 2051.

 

 

(a) Based on the aforementioned settlement date, maturity date, coupon rate, coupon frequency and yield to maturity, what shall be the corresponding bond PRICE (in term of “% of par value”)?Does your PRICE solution match the market quoted price?

 

 

 

 

 

 

(b)If the Fed tightens its monetary policy now, the financial market interest rates generally rise, and thus the aforementioned bond’s YTM also rises to “4.318” percent per year.Will the corresponding bond PRICE go up or go down then?By how much?

 

 

 

 

 

(c)If the Fed loosens its monetary policy now, the financial market interest rates generally drop, and thus the aforementioned bond’s YTM also drops to “3.318” percent per year.Will the corresponding bond PRICE go up or go down then?By how much?

 

 

 

 

 

(d) Based on your answers to (b) and (c), is there a positive, negative or zero association between bond YIELD and its PRICE?What kind of risk effect is this called?

What would this amount be if the appropriate interest rate is 7%?

By Tuesday, July 1, 2014 submit a 4-5 page report based on the following problem:

Mary has been working for a university for almost 25 years and is now approaching retirement. She wants to address several financial issues before her retirement and has asked you to help her resolve the situations below. Her assignment to you is to provide a 4-5 page report, addressing each of the following issues separately. You are to show all your calculations and provide a detailed explanation for each issue.

Issue A:
For the last 19 years, Mary has been depositing $500 in her savings account , which has earned 5% per year, compounded annually and is expected to continue paying that amount. Mary will make one more $500 deposit one year from today. If Mary closes the account right after she makes the last deposit, how much will this account be worth at that time?

Issue B:
Mary has been working at the university for 25 years, with an excellent record of service. As a result, the board wants to reward her with a bonus to her retirement package. They are offering her $75,000 a year for 20 years, starting one year from her retirement date and each year for 19 years after that date. Mary would prefer a one-time payment the day after she retires. What would this amount be if the appropriate interest rate is 7%?

Issue C:
Mary’s replacement is unexpectedly hired away by another school, and Mary is asked to stay in her position for another three years. The board assumes the bonus should stay the same, but Mary knows the present value of her bonus will change. What would be the present value of her deferred annuity?

Issue D:
Mary wants to help pay for her granddaughter Beth’s education. She has decided to pay for half of the tuition costs at State University, which are now $11,000 per year. Tuition is expected to increase at a rate of 7% per year into the foreseeable future. Beth just had her 12th birthday. Beth plans to start college on her 18th birthday and finish in four years. Mary will make a deposit today and continue making deposits each year until Beth starts college. The account will earn 4% interest, compounded annually. How much must Mary’s deposits be each year in order to pay half of Beth’s tuition at the beginning of each school each year?

 

Assignment 2 Grading Criteria

Maximum Points

Calculated the compounded interest over 20 years and evaluated the value of the savings account upon closing. (CO 1)

32

Calculated the bonus payout over 20 years vs. a one time payout with interest and distinguished which bonus option would be better for the client. (CO 1)

32

Calculated the present value of the bonus and analyzed the difference in bonus for the client. (CO 2)

32

Analyzed the tuition costs for the client and determined what the future costs will be and determined how these funds can be accumulated over time. (CO 4)

60

Written Components: Organization, usage and mechanics, APA elements, style

44

Total:

200

Explain the implications of globalization.

Week 2 – Discussion Forum 1

1212 unread replies.1212 replies.

Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

  Globalization and Its Ethical Implications [WLOs: 1, 2, 3, 5] [CLOs: 1, 2, 3, 5]

Prepare: Prior to beginning work on this discussion forum, review the following Week 1 and Week 2 required resources that focus on globalization, ethics, and moral reasoning. This will assist you in examining your own development of ethical and moral responsibilities as they relate to your Final Paper and its topic.

Read these articles from Week 1:

Read these articles from Week 2:

Reflect: The change of our world from a local economy to a national economy to a global, international economy means that increasingly diverse populations will have to work together to achieve common goals. However, as the economy becomes increasingly global, local economies and people may suffer economic disadvantage or may find themselves marginalized from the rest of the world. Globalization creates ethical dilemmas for which we will need to find solutions.

Write: For this discussion, address the following prompts:

  • Explain the implications of globalization.
  • Identify at least two ethical issues that go along with the global societal topic you have chosen for your final essay.
  • Explain how globalization contributes to or affects these ethical dilemmas.
  • Propose solutions to these ethical dilemmas that are feasible financially, socially, and culturally.

Your initial post should be at least 250 words in length, which should include a thorough response to each prompt. You are required to provide in-text citations of applicable required reading materials and/or any other outside sources you use to support your claims. Provide full reference entries of all sources cited at the end of your response. Please use correct APA format when writing in-text citations (see In-Text Citation Helper (Links to an external site.)) and references (see Formatting Your References List (Links to an external site.)).

Respond to Peers: Review your classmates’ posts, and respond to at least two of your peers by Day 7. In each response, provide comments on your classmate’s topic idea and ask a question that prompts your classmate to think more critically about how to explore the research topic in more detail. Each participation post should be a minimum of 75 words.

 

Week 2 – Discussion Forum 2

88 unread replies.88 replies.

Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

  Ethics and Moral Development [WLOs: 1, 2, 3] [CLOs: 1, 2, 3]

Prepare: Prior to beginning work on this discussion forum, review the Week 2 required resources that focus on ethics and morals. This will assist you in examining your own development of ethical and moral responsibilities.

Read the articles:

Reflect: Take a deeper look at your own life and determine which experiences have inspired ethical and moral reasoning. Were there any huge influences in this process?

Write: For this discussion you will address the following prompts:

  • Explain what it means to be ethical as it relates to personal, academic, and professional growth.
  • Provide at least one ethical dilemma you have encountered, and describe how the issue was resolved.
  • Describe how your general education courses have influenced your ethical values.

Your initial post should be at least 250 words in length, which should include a thorough response to each prompt. You are required to provide in-text citations of applicable required reading materials and/or any other outside sources you use to support your claims. Provide full reference entries of all sources cited at the end of your response. Please use correct APA format when writing in-text citations (see In-Text Citation Helper (Links to an external site.)) and references (see Formatting Your References List (Links to an external site.)).

Respond to Peers: Review your classmates’ posts, and respond to at least two of your peers by Day 7. In each response, provide comments that prompt further critical thinking and insight on your classmate’s perspective on ethical values as they relate to their personal, academic, and professional lives. Each participation post should be a minimum of 75 words.

Search entries or author Filter replies by unreadUnread   Collapse replies Expand replies Subscribe ReplyReply to Week 2 – Discussion Forum 2

Explain what it means to be ethical as it relates to personal, academic, and professional growth

Week 2 – Discussion Forum 1

1212 unread replies.1212 replies.

Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

  Globalization and Its Ethical Implications [WLOs: 1, 2, 3, 5] [CLOs: 1, 2, 3, 5]

Prepare: Prior to beginning work on this discussion forum, review the following Week 1 and Week 2 required resources that focus on globalization, ethics, and moral reasoning. This will assist you in examining your own development of ethical and moral responsibilities as they relate to your Final Paper and its topic.

Read these articles from Week 1:

Read these articles from Week 2:

Reflect: The change of our world from a local economy to a national economy to a global, international economy means that increasingly diverse populations will have to work together to achieve common goals. However, as the economy becomes increasingly global, local economies and people may suffer economic disadvantage or may find themselves marginalized from the rest of the world. Globalization creates ethical dilemmas for which we will need to find solutions.

Write: For this discussion, address the following prompts:

  • Explain the implications of globalization.
  • Identify at least two ethical issues that go along with the global societal topic you have chosen for your final essay.
  • Explain how globalization contributes to or affects these ethical dilemmas.
  • Propose solutions to these ethical dilemmas that are feasible financially, socially, and culturally.

Your initial post should be at least 250 words in length, which should include a thorough response to each prompt. You are required to provide in-text citations of applicable required reading materials and/or any other outside sources you use to support your claims. Provide full reference entries of all sources cited at the end of your response. Please use correct APA format when writing in-text citations (see In-Text Citation Helper (Links to an external site.)) and references (see Formatting Your References List (Links to an external site.)).

Respond to Peers: Review your classmates’ posts, and respond to at least two of your peers by Day 7. In each response, provide comments on your classmate’s topic idea and ask a question that prompts your classmate to think more critically about how to explore the research topic in more detail. Each participation post should be a minimum of 75 words.

 

Week 2 – Discussion Forum 2

88 unread replies.88 replies.

Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

  Ethics and Moral Development [WLOs: 1, 2, 3] [CLOs: 1, 2, 3]

Prepare: Prior to beginning work on this discussion forum, review the Week 2 required resources that focus on ethics and morals. This will assist you in examining your own development of ethical and moral responsibilities.

Read the articles:

Reflect: Take a deeper look at your own life and determine which experiences have inspired ethical and moral reasoning. Were there any huge influences in this process?

Write: For this discussion you will address the following prompts:

  • Explain what it means to be ethical as it relates to personal, academic, and professional growth.
  • Provide at least one ethical dilemma you have encountered, and describe how the issue was resolved.
  • Describe how your general education courses have influenced your ethical values.

Your initial post should be at least 250 words in length, which should include a thorough response to each prompt. You are required to provide in-text citations of applicable required reading materials and/or any other outside sources you use to support your claims. Provide full reference entries of all sources cited at the end of your response. Please use correct APA format when writing in-text citations (see In-Text Citation Helper (Links to an external site.)) and references (see Formatting Your References List (Links to an external site.)).

Respond to Peers: Review your classmates’ posts, and respond to at least two of your peers by Day 7. In each response, provide comments that prompt further critical thinking and insight on your classmate’s perspective on ethical values as they relate to their personal, academic, and professional lives. Each participation post should be a minimum of 75 words.

Search entries or author Filter replies by unreadUnread   Collapse replies Expand replies Subscribe ReplyReply to Week 2 – Discussion Forum 2

Describe how your general education courses have influenced your ethical values.

Week 2 – Discussion Forum 1

1212 unread replies.1212 replies.

Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

  Globalization and Its Ethical Implications [WLOs: 1, 2, 3, 5] [CLOs: 1, 2, 3, 5]

Prepare: Prior to beginning work on this discussion forum, review the following Week 1 and Week 2 required resources that focus on globalization, ethics, and moral reasoning. This will assist you in examining your own development of ethical and moral responsibilities as they relate to your Final Paper and its topic.

Read these articles from Week 1:

Read these articles from Week 2:

Reflect: The change of our world from a local economy to a national economy to a global, international economy means that increasingly diverse populations will have to work together to achieve common goals. However, as the economy becomes increasingly global, local economies and people may suffer economic disadvantage or may find themselves marginalized from the rest of the world. Globalization creates ethical dilemmas for which we will need to find solutions.

Write: For this discussion, address the following prompts:

  • Explain the implications of globalization.
  • Identify at least two ethical issues that go along with the global societal topic you have chosen for your final essay.
  • Explain how globalization contributes to or affects these ethical dilemmas.
  • Propose solutions to these ethical dilemmas that are feasible financially, socially, and culturally.

Your initial post should be at least 250 words in length, which should include a thorough response to each prompt. You are required to provide in-text citations of applicable required reading materials and/or any other outside sources you use to support your claims. Provide full reference entries of all sources cited at the end of your response. Please use correct APA format when writing in-text citations (see In-Text Citation Helper (Links to an external site.)) and references (see Formatting Your References List (Links to an external site.)).

Respond to Peers: Review your classmates’ posts, and respond to at least two of your peers by Day 7. In each response, provide comments on your classmate’s topic idea and ask a question that prompts your classmate to think more critically about how to explore the research topic in more detail. Each participation post should be a minimum of 75 words.

 

Week 2 – Discussion Forum 2

88 unread replies.88 replies.

Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

  Ethics and Moral Development [WLOs: 1, 2, 3] [CLOs: 1, 2, 3]

Prepare: Prior to beginning work on this discussion forum, review the Week 2 required resources that focus on ethics and morals. This will assist you in examining your own development of ethical and moral responsibilities.

Read the articles:

Reflect: Take a deeper look at your own life and determine which experiences have inspired ethical and moral reasoning. Were there any huge influences in this process?

Write: For this discussion you will address the following prompts:

  • Explain what it means to be ethical as it relates to personal, academic, and professional growth.
  • Provide at least one ethical dilemma you have encountered, and describe how the issue was resolved.
  • Describe how your general education courses have influenced your ethical values.

Your initial post should be at least 250 words in length, which should include a thorough response to each prompt. You are required to provide in-text citations of applicable required reading materials and/or any other outside sources you use to support your claims. Provide full reference entries of all sources cited at the end of your response. Please use correct APA format when writing in-text citations (see In-Text Citation Helper (Links to an external site.)) and references (see Formatting Your References List (Links to an external site.)).

Respond to Peers: Review your classmates’ posts, and respond to at least two of your peers by Day 7. In each response, provide comments that prompt further critical thinking and insight on your classmate’s perspective on ethical values as they relate to their personal, academic, and professional lives. Each participation post should be a minimum of 75 words.

Search entries or author Filter replies by unreadUnread   Collapse replies Expand replies Subscribe ReplyReply to Week 2 – Discussion Forum 2

Develop a list of advice on successfully assimilating into the selected country and culture.

Scenario

The company you work for recently acquired several international locations. You were informed that multiple positions will be moving overseas over the course of the next few years. Your manager has asked you to provide a comprehensive cultural information report to help employees make the transition to overseas employment.

Instructions

Select a country where a specific job will be stationed. You may select from the United Nations’ list of developed economies (Table A, page 169) in World Economic Situation and Prospects [PDF].

  • If you wish to select a country other than those listed in the UN document, you must request permission from your instructor.
  • Make sure the county of choice is logical for the company you are using.

Develop a 6–8 page cultural information report that will help an employee better understand how to make the transition overseas. Include the following:

  1. Write an Executive Summary that explains the organizational strategy for expanding company operations to this particular country.
    • What is the company strategy for working in this country?
    • What are the expectations of leadership (ROI)?
  2. Prepare an overview of the critical information an American would need to know to live and work in the selected country.
    • Language(s) spoken.
    • Currency, economy, political climate.
    • Housing, cost of living, transportation.
    • Health care.
    • Recreation

     

  3. Develop a list of advice on successfully assimilating into the selected country and culture.
    • Local customs, values, and traditions.
  4. Determine the type of immigration laws or visa requirements needed to work in the selected country.
  5. Discuss three ways company leadership can provide human and material resources to support employees in foreign locations.
    • What will help these employees succeed before, during, and after the transition period?

Note: The numbered assignment requirements outlined above correspond to the grading criteria in the assignment scoring guide, so be sure to address each point. The bulleted content below the numbered criteria is there to clarify, support, and contextualize the assignment instructions.

Format

This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

  • Develop an informational report that provides cultural information necessary for successful job performance in a foreign country.